Sunstone Hotel Investors Inc. (NYSE: SHO) reported today that the REIT’s comparable revenue per available room (RevPAR) for the second quarter is approaching pre-pandemic levels despite challenges in labor and other costs.
After the results were announced, shares of the Irvine-based real estate investment trust (REIT) rose 3.8% to $11.48 during midday trading and a $2.4 billion market cap.
With occupancy levels for its comparable portfolio at 74.6% as of June 30, RevPAR at the 12 hotels Sunstone owned over the last two years was $220 million, up 98% in the second quarter. Total RevPAR for the portfolio was $237 million.
The average daily rate for the Irvine-based firm’s total of 15 hotels was $319.79. The quarter’s net income was $38 million compared to a net loss of $28 million a year ago.
“Our second quarter results reflect significant sequential growth as increasing amounts of corporate and group demand added to already strong leisure travel. Our portfolio occupancy is at the highest level since early 2020,” Chief Executive Bryan A. Giglia said in a statement.
The company’s results also noted the purchase of The Confidante Miami Beach hotel in May added to this growth.
Sunstone reported total revenues of $251 million for the second quarter, doubled from the year before and beating analysts’ consensus of $220 million.
